IE Business Daily Business news for the Inland Empire.
The Inland Empire industrial market recorded a 7.8 percent vacancy rate during the first quarter, a 1.2 percent increase compared with the fourth quarter of 2025, according to a report.
An increase in move-outs among buildings 500,000 square feet and larger, was responsible for that trend, which was strong enough to help drive net absorption to negative 4.7 million square feet, CBRE reported.
Net absorption during the previous quarter was 3.6 percent.
Three point three million square feet of space was under construction in the first quarter, down from 9.5 million square feet at the end of last year. Only 72,876 square feet of space was delivered during the first quarter.
Average lease rates were $1.09 in the first quarter, a quarter-over-quarter decline of three cents.
The Inland industrial market during the first quarter was a bundle mixed signal, according to CBRE.
“While strong leasing activity and stable lease rates suggested a gradually rebounding market, space vacated by large occupiers created downward pressure, leading to rising vacancy and availability,” the report states. “However, the market could benefit from several tailwinds: a constrained new supply pipeline, an increase in occupier interest in owning buildings, and continued strong leasing activity as leases from the pandemic era begin to expire.”
